PANICKING ministers are at each other’s throats over how to stop the economy sliding back into recession.

Figures due out tomorrow are set to show a dramatic slump in growth, shattering the Government’s plans to cut the deficit.

Lib Dem Business Secretary Vince Cable admitted yesterday that the situation “isn’t great” and called on the Bank of England to print more money to boost spending.

But Tory Chancellor George Osborne has offered a radically different remedy, hinting he is considering another attack on welfare – to save enough cash to give tax cuts to workers earning more than £150,000.

Mr Osborne suggested measures would be announced in the autumn aimed at reducing workers’ rights and slashing benefits.

He said the plan was to “reduce the cost of employing people” and added: “It means cutting business taxes, and doing away with very high tax rates that damage growth and enterprise.”

Experts predict tomorrow’s figures for April to June will show weak growth of 0.2% – with some analysts expecting the economy to have shrunk. Shadow Chancellor Ed Balls said Mr Osborne needs at least 0.8% growth if his current financial plans are to stay on track.

And Mr Balls urged the Chancellor to stop the “reckless” cuts choking the economy. He said: “Growth is the key. That’s what Britain is badly lacking. If the world is building for a hurricane, it’s not the time to undermine the foundations of your house.”

Mr Cable also fears that US debt could derail any British recovery and said: “The biggest threat to the world financial system comes from a few right-wing nutters in the American Congress.”